Bringing corporate credit to DeFI with JellyFi

Transcript

hi everyone sorry for the delay um nice to meet you everyone my name is alexey and today i'm gonna present you with jellify which is the new capital efficient landing protocol so i'm gonna talk first about what we are building at jellyfi and why we are building uh it so uh first of all uh i'm gonna talk briefly about the define landing state and just to know um who did already land on ave or compound already so everyone basically uh cool so uh for the people on internet then um briefly to to understand um

landing on uh like 99 of landing on a uh on ethereum as of today is peer-to-peer and um every uh loan require yourself to actually uh delegate first uh the deposit first some uh assets in order to be used as collateral and this collateral is here to reduce the risk of counterparty because peer-to-peer are in a sense risky um and usually the collateral ratio is about a hundred and fifty percent so which means that uh in order to borrow one dollar you need to first deposit uh one point five dollar worth of uh asset on uh

on the on the lending protocol um and that brings us to the pain point and why we are building this uh the pain point is over collateralization so like i said most most protocols require yourself to over collateralize your loans and so that's a blocker from majority of use cases because in terms of capital efficiency it's really bad and that's cool for the peers but for the corporate market it prevents corporates to have access to ways to finance their development or add liquidity to their protocol through borrowing and that's why we decided to create jellify which is uh tackling the corporate credit market

and um basically it's a lending platform aggregator that enables audited debts and protocols to access zero collateralized loans so there is two sides to it there is the landing side and the borrowing side on the lending side you will have lenders which basically will be depositing assets uh directly to the borrowing pool or delay delegating the credit lines through credit delegations um so for instance you will have people that are that have deposited assets on a rvl compound for instance die and so what you will be able to do is use your a dye or c die and deposit them on a protocol

and you will earn an extra yield on top of that for on the other side you will have the borrowers and those borrowers will be coming and once they have been whitelisted and selected they will be able to access a new source of liquidity and funding through our protocol and for various use cases and so those use cases there are multiple ones first we are looking at corporate credits so that's basically funding through debt as of today protocols and dabs only found through seed seri ac ub series and stuff like this

and so there is a number of cases where uh protocols and devs would rather want to actually trigger a credit line you know instead of having to go through another round and sell more tokens and stuff like this um we are looking as well on being uh the de facto liquidity provider for fast withdrawals i don't know if you're aware of what fast withdrawal is but fast reservables in a sense is a type of withdrawal that allows you its users to withdraw from the layer 2 without having to wait for the l2 blocks to be mined and under the hood what it uses is

a withdrawal liquidity provider and so we aim at becoming this de facto liquidity provider for the whole defy ecosystem there is also another hot topic lately which has been the dao treasury um and so we've been uh seeing more and more advocate uh vocation and use cases regarding uh usage of uh credit lines for smaller and bigger dows using their native tokens as uh clutch or other means and regarding the smart contract architecture next so i know it kind of looks like uh next basics

uh planetary travel run map but bear with me as i explain it um what you have on the left side is the governance module and placeholder and basically what it does is orchestrate the whole protocol what it can do is once a protocol has been whitelisted it can create borrower pool through all factories and it can also adjust parameters of the of the borrowing pool such as for instance the interest rate um each borrower pool is associated with two smart contract proxies which is the borrower manager and the position token

the borrower manager manages the data and the credit history of each borrower pool and the position token represents your position in the borrower pool as a lender going back to the governance there is also obviously the depositor which are a trigger interacting with the borrower pool depositing or delegating their funds and the borrower which are actually borrowing and repaying their funds and they can interact only with their own liquidity pool um regarding the the governance module there is uh what you can do as well is trigger the jellify safety module so in case of default mitigation so for instance um when a borrower is not

repaying uh the governance module triggered the module and it repays the losses of every people in uh that have been damaged in the pool uh on the other hand when the border will repay part of its loan uh there is a fee which is taken from the interest rates in order to uh replenish the reserve um so that's the big the first big piece that we built and uh that we are continuing on improving and the second big piece that we are building is what we call the risk assessment framework so it's how we are mitigating the risk and assessing the risk of each protocol that are coming to our platform and our protocol so as of today what we are looking at is

what we call reputation risk so basically what's your reputation in the difficult system while looking at a diversified portfolio so for instance um if there is three protocols that are borrowing from a protocol uh for instance abc corp one two and three um and as a lender when i'm landing on the on on jellify i can choose specifically who has access to my credit lines and so uh if for instance uh i only allow abc cop one and two to access my credit lines and abc corp three is going default uh i won't be impacted at all by the loss

of this protocol um and lately we are we have the jellyfish safety module that i talked about previously and we are looking at limited maturity use cases because that enables us to build faster credit history in a later stage we are looking at on-chain insurance there is a number of initiatives in the ecosystems that are building such products that we could partner with and offer [Music] a way to insurance yourself against smart contract failure on exploits we are looking at building a credit default swap marketplace that could have like institutional on the selling side that could work as well as an insurance

stuff and we have we are looking at implementing uh legally binding uh smart contracts uh with the borrower and the lender so you you i guess you know you all know open low and uh so you you could picture some uh um cases where you could see uh you could create a smart contract that applies with the borrower and the lender and in case of mitigating and uh default you could bring into a clear host quote for instance to settle the settle the the agreements and we are looking as well on trustless way

to lock future earnings in case of defaulting so we'll be earning the um the the earnings that they they will be locking in smart contracts for instance and now it's time for a demo okay um is it running yeah cool okay so what you see is the app jellify app so we are connecting with two accounts

there is one lender account and one borrower account you see there is 12 as tvl so we are really high in the in the ranking there is nothing in that in our dashboard because we have no transaction yet and we didn't do anything so um first uh what we're gonna do is uh land some uh a dye uh so we previously uh land some dye on ave we have some adai you know whalat in a wallet and so we are lending uh 3000 uh a die to abc corp so we trigger a deposit so we first sign the message uh once the signing has been done we are

triggering a transaction um and once the transaction has been uh has been mined you will see that the dashboard uh updates accordingly and uh basically what you will have um is a pool uh with uh 3 000 that has been uh uh updated so yeah here you have the total asset that you have been uh that you lent this the total on gains that we've been starting to earn uh there is the protocol apy which is basically the app ui that you are earning on other protocols so that's the apy of avi as of today and you have the jellify extra apy which is of zero as of today because nobody

borrowed on the borrowing side um so the total api is of 264 and you have like the transaction that you've been putting in the protocol so um once that is being is done we are going now on the borrowing side so we will act as a borrower so we'll switch accounts um and uh you see that first you can't have access to the to the bore panel because you have not been wireless first by the protocol and now you have access to uh the borrower panel and so what it will want to do is now borrow some dye so it's gonna borrow 2000 die and trigger a transaction you see that as of today

there is 100 die in his wallet so it's triggering a borrower so we perform a borrow transaction on smart contract so the transaction has been mine uh we have now uh a loan of one day as a maturity and now you see that we have two thousand and a hundred die so uh the transaction now appears in a in the long dashboard you have like the balance and the data and the interest rate and the maturity that you can see um and so now we will go back to the other part so going back to the landing part you will see that the date has been recalling

updating accordingly um and so going back to the lender so now you see that there is one current loan that there is uh two hundred two thousand uh dollars that have been borrowed or worth of asset that have been borrowed on the protocol and so you've seen that now there is a jellyfish extra apoi that has been generated that is being generated and so now landing stablecoin you are not only you basically double your apis uh going uh going on a platform um and so you see that uh there is on your three thousand your position of three thousand uh die there is two thousand that have been borrowed so

um there is the transaction which is here and you have information on the borrower sales ratio stuff like this further than the page so going back now to uh the the borer um you will you will now want to repay its loan because the maturity has been done uh it did uh what you wanted with that and so it's gonna trigger repay it can repay partially or full so it's going to trigger a full repay it's going to sign the transaction yeah say the transaction the transaction is going to be mine it's going to be repaid so what you will see now is that in his wallet he won't have a hundred

die anymore because he will have paid interest um and so um what you see in his assets now is it has 99.99 so you basically repaid the principal plus interest so uh going back to the landing side now everything there is no api anymore because there is nothing borrowed and so you have the total earnings and there is no current loan anymore so what the lender would want to do is withdraw his earnings so you it will trigger a withdrawal uh from the from the borrowing pool

and um basically what you will see uh as of that is that you won't know how you will know earn uh 3 000 plus interest from the borrower so yeah that's that's about it okay and um for the last part so what you saw so is is the alpha and we are releasing it

on kovan um we are later gonna release it on mumbai which is the test net of polygon and we are later this year going to enable the credit delegation feature which we didn't unpacked uh in the in the app as of today paul um because it it has been uh quite a challenge in terms of of gaza optimization um and we are going to uh looking at launching on a polygon maintenance with one partner one selected partner and uh we are looking at having all audits on the q1 2020 do and start scaling the protocol from there we are looking at uh other l2 l2 solution uh to deploy

uh later next year and uh we are going to create the dell and release the token um so we have some announcement as well so like i said the alpha is live we are hiring in all departments so if you are looking to join a motivated of builders and help in the dfi ecosystem please reach us we have like black t-shirts and white t-shirts with jelly fire on it so um and we secure the grant from the ave grounds and also we are closing a round

of 4 million dollars in order to accelerate our development so yeah thanks a lot everyone and if you have any questions please um one quick question on the on the right when there was the extra uh apy how is that rate calculated and do you take into account the uh the risk yeah yeah so it's algorithm algorithmically calculated so as of today we are still working on this we are building models that take into account the risk of each borrower

and uh it's depend uh it's also dependent on the utilization what we call the liquidity ratio of the the pool obviously uh it if there is a low liquidity in the pool the rate uh will uh will go higher in the investment like if there is a lot of liquidity and not a lot of utilization for on the boring side you will have a low low ratio so hi um i was wondering you said that for the white listing you need to have kind of a reputation already in your system uh how would it work for startups who

are joining the the the the industry and how do you measure it yeah yeah that's kind of anger in the chicken sorry so you want to build with really high value partner that have like a big reputation but at the same time the people that is the most fundings are the early stage startups uh and so obviously they don't have like a big reputation so that's why reputation uh is one key element uh but we are working on a lot of other uh mechanisms that can uh that could enforce us uh and lower the risk as much as we can as we can for for those protocols so we've talked about insurance

mechanisms we've talked about cds we've talked about unlimited material loans credit fixed rates stuff like this so all of those options we should be should make us able to lessen the risk of each protocol and that at the end of the day if you are willing to participate and uh loan for riskier option you will have a higher rpi but obviously you will have higher risk in what we are doing here doesn't like there there it's still a risky uh there is still risk involved so you still need to be sure of what you are doing you are taking the decision at the end of the day okay cool thanks a lot everyone

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